Webinar recap – unlocking faster refunds with Visa: money back in as little as 30 minutes

During a webinar hosted by The Paypers’ Mélisande Mual, industry experts Lara Gunes (Director, Payouts commercialisation at Worldpay) and David Hernández (Senior Director for Visa Direct Enterprise Accounts, Europe) reveal how faster refunds can drive customer loyalty and cut costs. 

Today’s consumers and instant gratification go hand in hand, and ecommerce is not immune to the repercussions of this behaviour. The shopping experience has evolved with these expectations – from same-day deliveries to instant messaging – yet one critical aspect remains stuck in the past: refunds. While consumers can make purchases with a single click, they must wait an average of three to five days, if not more, to receive their money back for returned items.

While returns and refunds are seen as ‘necessary evils’, they also have the potential to drive growth: faster refunds can be the foundation of a deeper, more loyal customer relationship, even though that relationship starts with a refund request.

If you want to learn why 63% of shoppers spend more with retailers offering fast refunds, how to reduce customer support calls by 19%, and turn the return process into an advantage, read on and watch the webinar recording to explore proven strategies that not only improve customer satisfaction but also simplify operations.

Key webinar takeaways:

• Unlock hidden revenue: discover how fast refunds turn dissatisfied customers into loyal ones who spend more.
• Decrease support costs: learn proven strategies to reduce refund-related calls and lessen the efforts of customer support teams, as well as the financial strain put on the business.
• Create your competitive edge: transform returns from customer pain points into retention tools.
• Build loyalty: implement tactics that make shoppers choose you over competitors.
• Answers to pressing questions: a Q&A section at the end of the webinar.

The current refund landscape: a system in crisis

When we look at what the refund numbers tell us, a stark picture emerges, showing that the traditional refund process is broken at multiple levels. Looking at the shopping experience, Lara rightfully points out that most resources go into ‘before-the-purchase’ efforts, and the post-shopping experience is oftentimes overlooked. This oversight has created a perfect storm of problems that affect both consumers and retailers.

Shoppers experience multifaceted challenges: complex return processes requiring multiple forms, unclear communication about refund status, and most critically, the financial strain of having funds tied up for days or weeks. Retailers face their own set of challenges. Beyond the operational burden of handling customer inquiries, there's the hidden cost of lost future sales as well as customer dissatisfaction. 

The statistics are eye-opening:

• 92% of shoppers return up to 30% of their purchases,
• 27% of customer support calls are related to refunds,
• 94% of consumers say a bad review made them avoid a business,
• 52% of those surveyed will spend more if faster refunds are offered, with the average spent being 23% higher.

How did we get here? We’ll explore more below.

What's broken in today’s system?

The webinar revealed several critical pain points that make the current system unsustainable. For consumers, long waiting periods create a cascading effect of problems, especially for those waiting on returns for high-value items or in markets without clear refund regulations.

Moreso, lack of transparency compounds the frustration. Beyond initial confirmation that a refund has been agreed upon, customers are often left with no further updates about when funds will arrive. This prompts anxious customers to contact support repeatedly, creating a vicious cycle.

Consequently, retailers deal with increased operational costs. Managing high volumes of refund-related customer service calls leaves a toll on retailers’ resources, as they must have both the necessary staff and tech in place to support these requests. And it doesn’t end here. The complexity of tracking down lost or delayed refunds adds another layer of expense, often requiring retailers to work with banks or payment providers – who may charge additional fees for the service – or to build reporting functionality on their side, which is also costly.

All of these come packaged with reputational harm. Customers blame retailers for refund delays, irrespective of where the issue lies in the payment chain. When a single negative review can influence countless potential customers, this misattribution can be devastating.

Why are faster refunds a secret weapon?

The transformation of refunds from a friction point to a competitive advantage represents a paradigm shift in retail thinking. During the webinar, David pointed out that ‘fast refunds tap into human psychology, and they create a positive surprise, a delight effect on the consumer because it exceeds their expectation’. So, faster refunds help transform negative commercial touchpoints into positive ones, and this change is backed by data shared in the webinar: 95% of consumers surveyed say same-day refunds would make them more loyal to a merchant, while 63% would spend more with retailers that offer fast refunds.

Although customer satisfaction is important, for merchants, faster refunds help unlock trapped revenue. Three-quarters of consumers wait to receive their refund before making a new purchase. By accelerating refunds, retailers can shorten this cycle, increasing the likelihood that the next purchase will be made from their store rather than a competitor’s.

Why speed matters: the psychological impact

For some time now, speed has equated with quality service. When consumers can order a ride in seconds or have groceries delivered within hours, they naturally question why refunds are so time-consuming. 

So, what happens when speed expectations are met even for returns? 

When refunds arrive quickly, what was once a negative touchpoint (returning an item) becomes a positive brand experience. This psychological shift is powerful: customers remember the pleasant surprise of a fast refund more vividly than the disappointment of the return itself. The trust in the seller increases, and so does their spending, which ultimately helps drive loyalty.

Faster Refunds by Visa

During the webinar, David elaborated on the Faster Refunds solution by Visa, which, as the name suggests, expedites the refund process by sending funds to the customer in real time.

The technical architecture represents a significant departure from traditional processing. It leverages Original Credit Transactions (OCTs) with specific tagging, enabling issuers to identify and process faster refunds. Crucially, the system maintains security by requiring refunds to be linked to the transaction ID of the original purchases, preventing fraud while enabling speed.

Key capabilities of Faster Refunds by Visa include:

• 30-minute refund processing,
• 24/7/365 availability,
• Global reach and multi-currency support,
• Bank-grade security and compliance,
• Easy integration with existing systems.

Case study: eMAG

The impact of faster refunds was illustrated through the case study of eMAG, a major Romanian marketplace. eMAG implemented Visa’s Faster Refunds in 2021, and it now processes over one million instant refund transactions yearly. For the marketplace, refunds became a loyalty driver. Signalling the receipt of money back as soon as the return is approved helped the retailer shorten re-purchase cycles and lure first-time shoppers, a testament to the fact that speed matters even in price-sensitive regions.

The future of retail: refunds as a competitive advantage

The webinar speakers made it clear: faster refunds are no longer a nice-to-have feature but a critical component of competitive retail strategy. 

Retailers that still rely on traditional refund processes risk customer defection daily. Every day spent processing refunds the old way is one where competitors employing a modern approach can capture your customers. The technology exists, the infrastructure is in place, and early adopters are already reaping the benefits.

The transformation of refunds from a ‘necessary evil’ to a ‘competitive weapon’ represents one of the most significant opportunities in retail today. Those who act now position themselves at the forefront of customer experience innovation. Those who wait risk joining the growing list of retailers wondering why their customers shop elsewhere.

Do you want to upgrade your refund process and learn more from our experts? 

Watch the complete webinar recording to discover how you can implement faster refunds and transform your customer experience. The future of retail is here – don't let your competition get there first.

About the author

Estera Sava is a Senior Editor at The Paypers, bringing her expertise in content creation and editorial processes to the Payments & Commerce team. With a focus on the ever-evolving ecommerce payments landscape, she is actively involved in various high-impact projects and industry reports. Through her proactive approach and dedication, Estera helps drive the success of The Paypers' initiatives. You can reach her at estera@thepaypers.com.

 

About Worldpay

Worldpay’s vision is to unleash the potential of every business. We do this through our ability to power global commerce by providing payments technology and expertise to our clients everywhere. Our processing solutions allow businesses of all sizes to take, make, and manage payments in-person and online worldwide. Annually, we process over 50 billion transactions worth more than USD 2.3 trillion across 146 countries and in 135 currencies.